JFRM  Vol.6 No.2 , June 2017
The Impact of Predation Risk on the Marginal Value of Cash Holdings: An Empirical Perspective
Abstract: As an important external governance mechanism, product market competition has considerable impact on the marginal value of a company’s cash holdings in various aspects. This paper examines the impact of predatory risk on the marginal value of cash holdings in product market by sampling Chinese A-share listed companies from 2000 to 2013. It shows that the predation risk in the product market increases the marginal value of cash holdings by 0.2 Yuan.
Cite this paper: Yang, X. and Zheng, J. (2017) The Impact of Predation Risk on the Marginal Value of Cash Holdings: An Empirical Perspective. Journal of Financial Risk Management, 6, 150-162. doi: 10.4236/jfrm.2017.62012.

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